Morgan Stanley settles securities case in NJ

NEWARK, N.J. (AP) — Morgan Stanley has agreed to pay $100,000 to settle claims the company violated New Jersey law in its sale of nontraditional exchange-traded funds.

The state Bureau of Securities claimed Morgan Stanley failed to adequately train and supervise its financial advisers.

The state also says the advisers recommended nontraditional ETFs to elderly investors who were seeking income. The state says such transactions were unsuitable and resulted in losses.

Exchange-traded funds typically involve shares representing an interest in a portfolio or securities that track an underlying benchmark or index. The nontraditional versions reset daily and are intended to achieve objectives only on a daily basis.